Latin American equities rose on Friday as energy stocks climbed on rising oil prices even as other stocks were hit by fears of global inflation. The MSCI Latin American stocks index closed up 0.36 percent, supported by gains in oil stocks, but markets in Brazil and Mexico slipped. Still, the index posted a weekly advance of 2.4 percent, more than reversing last week's losses.
Markets took gains in US employment in stride and focused attention on oil prices, still high on the revolt in Libya. "The economic reports came out good in the United States, but it was already priced in yesterday," said Gerardo Roman, head of stock trading at brokerage Actinver. "With strong data and commodities and oil prices higher, people are betting that inflation could hit the United States."
Brent crude prices rose to $116 a barrel as Libyan security forces began a violent crackdown on protesters in Tripoli and clashed with rebels near a major oil terminal. Oil dragged on US equities, too. In addition, the upcoming Carnival holiday, which will shut Brazilian markets on Monday, Tuesday and part of Wednesday, weighed on stocks as investors cut positions in risky assets so as not to be hurt by a shift in sentiment during the holiday.
Alessandra Ribeiro, an economist with Tendencias consultancy in Sao Paulo, said "people don't want to take on a lot of risk." Brazil's benchmark Bovespa stock index fell 0.2 percent, but was up around 1.2 percent for the week. Shares of state-controlled energy company Petrobras rose 0.41 percent to a nine-month high. But mining company Vale, the world's largest producer of iron ore, fell 1.11 percent.
Telecom Oi's operational holding company Tele Norte Leste Participacoes shed 1.75 percent and operating unit Telemar dropped 1.85 percent as profits missed estimates. Chile's IPSA index rose 0.25 percent, adding around 3.7 percent for the week. Forestry and paper company CMPC rose 0.66 percent. The company said on Friday that its net profit more than doubled in 2010 on higher wood pulp and wood prices. Mexico's IPC index fell 0.63 percent, closing flat on the week. Shares of America Movil, one of the world's largest telecommunications company, lost 0.79 percent.